Singapore also in the red. Currency markets certainly, we have the sea and why in the frame at the moment. This is as we got the story today about beijing crossing gains in the yuan as it seeks to cheapen exports and bolster weak spending. That is a theory being compounded, saying a stronger yuan is ideal for beijing at a time when president xi is pushing for a more selfreliant economy. That is where we are with the currency markets. Yvonne yeah. Interesting call there. Thats more analysis with eddie cheung, e. M. Strategist. This all about shifting to more selfreliant economy in china. Given the gains we have seen in the renminbi, is it sustainable and how much tolerance is there for further yen strength . Eddie well, i think we certainly do believe there is more room for the cn wide to gain. First in terms of the dollar view, we think the dollar still has more room to go lower. We look at the indices, we are only at about three month highs. We are still below where we are in terms of the highs for the year. On the trade index we believe the cny has more room to gain further. In terms of dual circulation you are mentioning, we agree with that view as well. Stronger cny is potentially better for china, especially given bigger focus on demand. Given that the u. S. Is unleashing this massive easing we are seeing, stronger currency at this point in time could potentially help china stave off a lot of hot money inflows, as we saw happening in 2008. That cny haselieve more room to go further. Yvonne as china becomes more selfreliant, i wonder what other nations or currencies actually benefit from that . You cannot use the same trade proxies anymore to follow the renminbis move. Eddie i think the most direct beneficiaries of a stronger cny would be taiwan and korea. These economies are very closely linked to that of china in terms of their trade balances. Chinas biggest import partner is korea and probably after that would be taiwan. If china is buying more stuff, it will be buying more than the two countries these economies. On that aspect we believe the taiwan dollar and the korean yuan also has more room to rally, even though the taiwan dollar has not been a strong this year. You mentioned the dollar weakness that we have seen. That has taken a pause in the last couple days. But so far it is really benefited more the g10 space more than emfx. So how could this dollar weakness brought not further, you think broaden out further, you think . Eddie what we are seeing now is the dollar move has been more in the g10 space, but what we are certainly focused on is still around the election risk. If we look at what is happening in terms of vix futures for pricing around the president ial election, we show vix futures have climbed to a record high. So there is a lot of uncertainty being priced in, and that is not just a g10 move, it is also an emfx move. Heading into the elections, we do expect more headlines in terms of u. S. China relations. We do expect to have an impact on asia as well. And certainly if the polls narrow further, the markets believe the dollar can squeeze if we end up with a trump reelection. Given fiscal stimulus and protectionism. So i would see that uncertainty having an impact on the dollar, especially heading into the very, very shortterm. Rishaad eddie, just wanted to know whether you can see the yuan as perhaps being a barometer of the markets expectations of the u. S. Excellent u. S. Elections in any way . Eddie i would believe that at that point in time. If we look at ye if we look at the recent tensions between u. S. And china, the reaction has been more limited. It is more of a kneejerk reaction, then things go back to normal. I believe the move in china right now is more related to the story around onshore Interest Rates, to the fundamental strength of the chinese economy, more than being an election risk play. I believe that markets have been dealing with this election risk, or u. S. China relation risk for quite a while. The dny has become more desensitized to it. So there may be more volatility, but that should not be a key factor. Rishaad we are looking at averaging of inflation and the feds new way of dealing with things. Does that move anything for you with regards to how the dollar performs in the future . Does it provide more certainty, and therefore, perhaps not kneejerk or volatility that has been, not absent, but is coming back . Eddie certainly what has been happening in terms of the feds weest move towards ait, believe it shifts more attention to overseas assets. If you look at what has happened recently or even overnight, that shows that there is a certain degree of sensitivity towards u. S. Markets being overvalued relative to other markets. So if we are thinking about what other markets we are supposed to be looking at, definitely we think emerging markets. Asian e. M. , we think e. M. Will be expanding out, just given the context where chinas economy is doing better, growth in the region is more skewed towards china, and also the potential recovery in global growth. That potentially has more room to run just over the longer term, once we are past this election risk. Yvonne you mentioned the renminbi not being the right barometer for the u. S. Election risk. What are you looking out for them . Eddie i think that plate would probably be more in the g10 space. I think dollaryen would certainly be a play there, just given the sensitivities around risk that we see around dollaryen. More directly in terms of looking at the index, the euro itself. Euro, theres the other aspect of relative Economic Performance between the u. S. And europe, but in terms of a pure dollar move that we were talking about earlier, i think euro and yen would be two key things to look at. Rishaad eddie, just a final word. Is the strength of the yuan also reflecting strengths of the economies as it rebounds perhaps a better than some of its peers . Eddie absolutely. I think one reason why the authorities have been tolerating this stronger cny on a trading basis is given the fact that chinese economy has been doing so much better. Saw thist pmis we week suggested this. It shows the china recovery economy has been much faster than the rest of the world. This gives more comfort to the authorities here because they do not feel they have to ease relative to what we see across the world. So they are happy to keep Interest Rates a bit at a more neutral stance, i would argue, rather than being extremely easy. They want to avoid the mistakes that they made back around 2008. They do not want to create too many bubbles. They want to make sure liquidity is just adequate and getting to the right places. So we are not talking about broader rate cuts, we are talking targeted rate cuts. More moves to ensure that money in the system remains at a very balanced level. So, all this i would say is a positive for china, because it means they are not unleashing the hoses. We are not seeing money being slashed slushed around everywhere. We think the cny can depreciate further. Yvonne if emfx has further room to run, i am wondering, at what point will this be a problem for Central Banks in the region . Will they fight this dollar weakness . Eddie i think what we are seeing now is if we are seeing a broader dollar weakness, theres really no point for the Central Banks to fight this dollar weakness right here, because everyone is in kind of the same vote. If you are fighting against the dollar weakness, you will be building up reserves. What we have seen in terms of other Central Banks in the region, especially our b. I. Over the past week, especially our b. I. Banks,us for the central less so on strengths of currency in the same time, it is probably more that recovery gains ground. Rishaad eddie, thank you for joining us. Eddie chen. Lets get over to new york, because sophie has the first word news. Sophie good news for goldman. Malaysia dropped criminal charges against Goldman Sachs, a key step in the 3. 9 billion deal that allowed them to move on from the missing money scandal. The decision marks progress in goldmans efforts to resolve its worst issue since the financial crisis, but it is still in negotiations with the u. S. Department of justice for a separate agreement. Meanwhile, worldwide coronavirus cases have not topped 26 million, with 865,000 deaths. There are warnings about new u. S. Infections after this weekends labor day holiday. In brazil, where cases have now exceeded 4 million, there have been more than 800 deaths the last 24 hours, although both infections and deaths are slowing. India reported record daily infections of more than 80,000. Thailand has lost its 100 day virusfree streak, reporting its first locally transmitted infection since late may. The case involves an inmate at a bangkok prison whose history shows he worked as a dj before being jailed. And france is throwing 100 billion euros at a stimulus plan aiming through revise the economy and president microns prospects. Global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. Im karina mitchell. This is bloomberg. Still ahead, the outlook for Precious Metals from someone who actually stores the physical. We are going to hear from them later on. Rishaad coming up next, china laying out a fiveyear plan to develop its domestic chip industries to counter u. S. Restrictions. Details are coming your way after this. This is bloomberg. This is bloomberg. You are back with Bloomberg Markets. Chip stocks tumbling on chinas plan to prioritize the development of its own domestic Semiconductor Industry. Lets get to Stephen Engle who is having a first look at this and joins us with a look at how bad was this chip stock rout to begin with, and tell us, what are the ramifications here, steve . Stephen lets bring up vstoxx. Lets bring up those stocks. Down 7. 9 . A bigname that index. They were lower rather it was broadcom, nvidia, qualcomm, Applied Materials and the like. All lower. Asia,sely, yesterday in both hong kong and shanghai, you saw chip stocks there in the Semi Conductor space soaring. I am looking at today, some are giving back some of those gains. In lineay probably more with the broader tech selloff we saw on wall street. Also it had a sharp runup over the last week as well. Will Semi Conductor also lower. Tech, doing led chips and the like. They are significantly higher. Up by some 20 today. As a tale of two its bifurcation of the Semiconductor Industry and the tech space as a whole. Were getting news from people familiar with the situation that the top leadership and china are going to put elements into the next fiveyear plan, which top leaders in beijing begin meeting next month to hammer out the next fiveyear plan. Theyre going to start putting in lots more emphasis on research, education, and financing in socalled thirdgeneration, or next generation chips that are really underpinning all advanced technologies. With the white house blocking and banning and putting resections on Chinese Companies like huawei and others from accessing and purchasing u. S. Going toll, theyre have to find them somewhere else, and why not build your own industry. Yvonne yeah. You said it, that this is looking more like a tech cold war, this decoupling we have seen between china and the u. S. So this move, was inevitable for china . And how quickly can they catch up . Stephen it is going to take some time of course. ,hey have had some chipsets some pickups if you will, which s why they some pickups some hiccups, if you will. China is importing billions from u. S. Labs, and also taiwan. To feed heavily reliant their domestic innovative Companies Like huawei with the u. S. Designed and made chips. Even before the story came out, had earmarked 1. 4 trillion u. S. For investment in advanced technologies including Wireless Technology and artificial intelligence. You can probably now add nextgeneration chips into that big sum going forward. We will see if we learn more of that in october when they release that fiveyear plan. Stephen engle, thank you. Coming up, more about facebook, making new calls on its political ad policy as the two month count down to the u. S. Election begins. We hear from facebooks Vice President of Global Affairs and communications, next. This is bloomberg. Policies to guard against Voter Suppression on facebook and miss living misleading posts ahead of the u. S. Election. They include the blocking of all new campaign ads one week before election day. Earlier,g spoke outlining the companys new strategy. Why he reason this is an unprecedented election taking place. So unprecedented times require unprecedented measures. A campaign,end of if ads are rfun which are particularly false or misleading or polarizing, you do not have time for you in the media, for opposing campaigns, to scrutinize and challenge and contest what is said on an ad. So were trying to create this guardrail, if you like, in the final week of a campaign, so any ads run and the targeting arrangers can be adjusted by the campaigns, all that is legitimate but they cannot if they werewhich, run at the last minute, the final hours are final days of the campaign, there would not be enough time for them to be properly scrutinized and the balked if necessary and debunked if necessary. It is important for your viewers to appreciate that all the ads in anebook are lodged probably the most transparent of its kind anywhere, so that anyone can see who is paid for it, being directed at, and so on. Maximum transparency combined with this new limitation on no new ads being produced in the final because the campaign. Zuckerbergd, mark today made no indication the policy and the content a political ads is changing. What about the critics who say this is piecemeal and is not do problem, face the real which is facebook allows lies in these ads to persist . Nick no major outlet or operation has vowed to try and adjudicate on the exaggerations, halftruths and character chris characterizations politicians often say about each other. No majora reason why player as tried to enter into the arbiterehow be of complete accuracy and truth. Of course we do. We have standards against violence, hate, all sorts of other things on our platform. We act when we must to remove posts. We removed posts from the president in recent weeks and months. On the whole, we think that politicians in an open democracy should be able to say what they want to voters, and indeed, they should be able to say what they want about each other, within those guardrails. One of the significant amounts meant, additional amounts meant we may today additional announcements we made today, is were going to apply much more aggressive labels to posts where theres any question in the post about casting doubt about the legitimacy of voting methods. Asserting very clearly for our users through these labels, for instance, voting by mail is a trustworthy way of voting in the election. Facebook vp ofas Global Affairs and communications nick clegg. Of thermer leader liberal democrats in the u. K. , talking to emily chang. Lets have a look at the latest headlines. Yum china set to close hong kong share books early. Listing price at 412 hong kong dollars a share. Chinas Biggest Record drought selling almost 42 million shares. Yum will use about half the proceeds to expand its Restaurant Network, and the rest will be for new technology and supply chain food innovation. The race for tiktok assets across the globe sees softbank considering a bid for the assets in india. We are told it has held talks with reliances geo platforms about a deal. Softbank says the negotiations have stalled, but they remain interested. Taking a look at equity markets right now, and the selloff continues. Still lower by more than 1 off the asiapacific benchmark, on course for the worst performance since april. The i. T. Sector is the big culprit today, still falling with names like tencent falling from 2 . Nasdaq futures still lower by 1 . Take a look at the china markets as well, 1 losses for the hang seng as well as the china largecap. Down 1. 3 . Tech heavy benchmarks like the kospi and taiwan also falling. And japan heading for a 1 decline, leading to the lunch break. The dollar as well on course for its first weekly gain in four weeks. Pretty steady so far for asia fx after some of the steep gains that we saw the last couple days. Plenty more to come. This is bloomberg. Bloomberg. 10 29 a. M. In hong kong and shanghai, this is Bloomberg Markets asia and here are your headlines. The u. S. , democrats and republicans will Work Together to avoid a government shut down ahead of the election and push a stopgap bill to let federal agencies keep working. Nancy pelosi and Stephen Mnuchin clinched an informal agreement to keep the government running after the start of the fiscal year october 1. There is no progress on a new virus stimulus deal. The u. S. Trade deficit rose to its widest in 12 years in july with a surplus on services plunging to its lowest since 2012. The gap of goods and services swelled to more than 63 billion. The positive balance on services, declining for the first time in three months. Exports rose month on month by 8 but imports climbed almost 11 . Clubs face aoccer potential drop in income. Actedglish premier league after its licensee withheld payments to deal with holdings that are worth 665 Million Dollars over three years. The epl is seeking a new partner in china with a new season due to start september 12. The government of indonesia, saying it doesnt support proposals to dilute Central Bank Independence and still relies on policymakers to help fund the fiscal deficit. Ministers intend to maintain sovereign bond purchases next year to support social protection amid the coronavirus. Bank of indonesia says the program has been simply a oneoff measure. Centrales de facto bank is taking its access to local and u. S. Dollar funding protect the Financial Systems from the fallout from covid19. The Monetary Authority will provide additional channels to borrow money and will allow lenders to accept more forms of collateral. They say this is intended to contain liquidity strains before they become a threat. Lets check in on markets. Down arrows today given what happened on wall street, nasdaq down 5 , tech shares under pressure but the declines are not as pronounced as they were over in new york. The hang seng, the big story, china 400a yum hong kong dollars apiece. Lets kick it out to the bond markets and see what is occurring, because what we have been witnessing is these deals going up. We have the 10 year yield, 6. 310 , unchanged. The bond market pretty much unmoved by what was going on with equities. The u. S. Dollar index down a fraction but it doesnt look like the dollar is on track for a gain. The sea ny, stronger. Policy touted at the moment. Gold is up as investors give way to mixed u. S. Economic data and the stronger dollar for this week. The precious metal is up 30 this year. Investors see it as a safe bet amid uncertainty. Our next guest transports gold bullion. He is a founder and managing partner of a company that launched in 2016 and traded 1 billion worth of gold bully on. Are you busy . Yes. We have been busy this year. Clients, and the supply, that was tough in terms of the disruption to the supply chain. Are buying the physical stuff. Are people storing it . Have you Seen Movement of people selling if they bought it earlier, or is the demand as strong as it has been all your since march at least . Demand is strong. We see an active trading, investors are increasing their holdings or are new to the physical bullion side. We see liquidation by clients early on. Since 2019, january, we are up a must 50 almost 50 . We will take cash or cover for losses in margins and other assets. What we see is some clients that come to us and what want to get finance against their gold so they are not willing to give up assets but they are seeing opportunities and other assets or they want to cover losses in other assets. Seen as as it still haven or are people just having upon to having a punt . Last time we spoke it was before cobit and we were optimistic about gold and we are still optimistic. Look what is happening. We have the global recession, we have a pandemic that we are not sure how and when we will be out of the woods, we are not out of the woods yet. If you are looking at data, we have the stimulus plan, we announced a stimulus plan in france which means more debt, more continuing of the zero Interest Rates. You look at these, you look at the dollar weakening and remember, gold is a hedge against all these risks. Investors are concerned. They dont have any better options. We see more upside. We have seen this study retreat after steady retreat after topping 2000 a couple weeks ago. Do you think we have hit a peak . What is your year end forecast and for 2021 . In a straights line. There will be correction along the way. We expect, we thank the peak we think the peak rally is in a bit of a recess as investors have to look at the risks and what other options are out there, but we see upside as we go towards the end of the year. We need to see what the elections will bring. We need to see what the stimulus plans do to work, and definitely, towards 2021, our estimation is that you will get or 2300 by midyear 2021 based on what we see now. Yvonne there are still critics out there about this gold rally. We spoke to one of our frequent guests a couple weeks ago and he said there is zero fear of u nflation, no likelihood we will see faults in the g20 and when it comes to the zero rate that is a full sense of drive as they reduce costs. To what extent you think this is true . I think partially. Gold has i would say, you mentioned before, and emotional an emotional appeal to investors. With all due respect, some of the claims are true. But there are concerns. We are not done yet with the pandemic. We dont know how the recovery will take place. We expect a slow and paste recovery. Our economies need to adjust. Think of industries will be wiped out or will need to change course. This,nvestors look at maybe inflation isnt the major concern, but it is a concern, and the dollar is weakening. There are no other alternatives. Gold is very liquid. That gives comfort to investors to park their money temporarily in this asset and wait for things to clear up in the future. For things to clear in the future, of course. Rishaad i will take it from there. I want to move away from gold to silver, which has been the big surprise. Silver has always been this , itodity which has been never quite gets there. This year it has been delivering. Does it have further to go . Remember, the price rallied in august. In a short time span it went up almost 20 . We look at the industrial use of silver, not much demand there but on the investment side, we look at the gold to silver ratio and that was very high, which meant silver was unappreciated, underpriced. Sore is a slower pace, silver basically matched the traditional gold to silver ratio and it is comfortable price where it priced where it is now. If we are right and gold will rally, silver will catch up as we target gold to silver ratio, anything between 6070. Before the rally in silver, before july and august, we had a gold to silver ratio over 100. We are back to around 70, 75 so definitely, once gold goes up, silver will follow. Unsurprisingly, you advised investors to hold 10 of their holdings in Precious Metals like silver and gold. Of course, you would say that. Why would i want to store it with you rather than take out an etf or buy into a company that minds this stuff . Mines this stuff . Mining stock, you buy stock in a company which means it could be a good or bad company. You have management, what other activities they have. That is not gold. I agree this year, the main driver behind the price are the Central Banks in the etfs. Etfs are holding alltime highs of almost 4000 pounds now. I agree, etfs are a good tactic tool to get exposure to gold. Them is the, one of power rate. When you look at the longterm holding, do you really want to take a promissory note . Can you count on the trust to do Good Business . The second concern, whether the underlying assets are there 100 of the offering. I would like to remind you, in april, we saw the future market trust fork, almost 5 gold in new york because there wasnt enough gold in comex to supply the physical delivery for the contract. From an investor point of view, do you want to have the physical underlying asset under your name or do you trust the trust to hold enough gold to allow redemption . Etfsd to be the only, were the only way to trade gold. There are great companies, lots of options, but there are companies that globally allow clients to buy and store physical gold. The cost structure is the same as etfs. Strategically, holding physical still gives investors the comfort and sense of, the peace of mind they look for. Rishaad you would say that, wouldnt you . Joshua,lking to you, who buys, stores, and transports gold. Republicans and democrats are in a stalemate over a stimulus bill. We have a preview. This is bloomberg. Yvonne we are seeing a glimmer of hope for the pandemicbattered u. S. Economy. Stephen mnuchin and nancy pelosi agreed to work on passing a stopgap spending bill ahead of the president ial election. We go to our policy editor Kathleen Hays with the latest. They havent finalized the stimulus package yet. What have they agreed on . Do you remember this week, when Stephen Mnuchin was testifying before the finance committee and maxine waters, the head of the committee, got him to promise to call nancy pelosi . He did. They had another call and what they agreed on is avoiding a Government Shutdown right before the election by not letting this endless stalemate over the virus relief legislation, where there they are 1 trillion apart, and got a stopgap spending bill. It is an informal agreement. It clears the way for the government to keep running at the october 1 start of the new fiscal year. Remember, that is just about six weeks ahead or five weeks ahead, just over a month ahead of the election. They will have this unresolved question over the new stimulus package. What will be in it . Will you take the trimmed down version of the republicans, or the 3. 5 trillion the democrats put forth . They have agreed to come down to about 2 trillion, but the republicans havent budged. This is the issue. Roiling theoid markets. People apparently were worried pass awould the need to stopgap spending bill encourage the two sides to go into that saying, we will try to get our stimulus steps into the bill . Mnuchin and pelosi have agreed not to do that. It doesnt resolve this question, it doesnt get 600 per week on employment checks going to people who have lost them or more relief for Small Businesses who lost support under the paper Check Protection Program but it avoids this one problem. We have the questions over the labor market, maybe this will help get that settled till the markets wont take another blow. Ishaad of course, payroll friday. Did we learn anything from thursdays jobless claims that could shed light on this report due out later today . Actually, the main thing we learned is that it is harder than ever to really pull apart these very important parts. Putting have a pandemic new trends, new impacts on the labor data, they are adjusted and when you mess with that it is hard to predict and analyze. Lets pull up a chart so wean look at the forecast. Payrolls are expected to rise 1. 35 million from 1. 76 million in july. That is a bit of a slowdown in august, not bad though, a wide range of forecasts. 100,000 dollars, up 2. 4 million. Let me throw into throw in one of these trends, schools are not fully opening so instead of hiring of teachers in july and august, which would move the numbers up, you will see less of that. The seasonal factors, you look for these big gains in these jobs, they are going to adjust even lower. Bloomberg economics is estimating that 18 Million People will not be taking the kind of jobs they would have been taking and that is when reasons one reason you are seeing the slow down. Unemployment is a to fall to 9. 8 . It was up to 14 in august, 10. 2 percent the month before, and there is talk of distortions from the pandemic, the way the jobs are counted on. People are no longer looking for jobs. They are discouraged. That will pull the unemployment, and that is not good. People will tear these numbers apart to figure out what they really mean. Yvonne im sure. Hays. Thank you, kathleen a lot to unpack and the latest jobs report coming out friday. Coming up, and interview about the selloff in tech shares and how our guest Investment Strategy changes depends on depending on who wins the u. S. Election. This is bloomberg. Rishaad u. S. Equities tumbled by the most in almost three months as the rotation away from highflying Technology Names gains steam. His viewsn discussed on Technology Evaluations amid the uncertainty and told us how a trump or biden presidency could shift his companys investment position. Its not the beginning of the end but i would say we are coming upon one of the more Uncertain Times in american history. We have a divisive president ial viruson coupled with the that has had a huge impact on the economy and the markets have been remarkably strong since the third week in march. It is not surprising, valuations, particularly technology landscape, have gotten to extraordinary levels. It is not a surprise. I dont think it is any indication of the beginning of the end but i think markets dont like uncertainty and we have an election in 60 days, where it is a tossup who is going to be the president and what the policies of the next Corporate America and taxation. These are uncertain issues and uncertainty is the enemy of markets. You have said it wouldnt change your position in investments no matter which person was president for the next administration. Are you exchange are you changing your views on that . Do you think there would be widely different policies . Bill i dont know if it is completely novel. Biden and his choice of Vice President suggests a more to a moreompared Progressive Democratic administration, to the extent biden would be the winner. But i i do think they will have different policies when it comes to taxation and business, although i do think biden and Kamala Harris is in a more moderate camp then bidenwarren, for example. On valuations, you mentioned things are a little overvalued. Today. S down 8 is that closer to the real valuation for these companies or a fair valuation in this environment, or could there be more to go . Bill i dont know enough about those businesses to know whether the price is fair or not, but when i speak of valuation of some of the more highflying companies, lots is predicated on what is going to happen in the future. What is interesting is, when you have a world with almost 0 Interest Rates, the discount thes used to discount future are low. With Companies Growing very , low discount rates, rapidly growing companies, you can get high valuations. The problem is, small changes in your assumptions can lead to a different outcome in terms of what a business is worth. I think those small changes and assumptions can relate to confidence in what the future looks like and it is hard to predict the future when you have an uncertain political environment. Just the inherent uncertainty about the virus, yesterday the cdc told states to prepare for possibly a distribution of the vaccine november 1. If there was a real vaccine distributed in scale before the end of the year, if there isnt one, that has an impact. It is not known today what those outcomes are. You factor in your risk premium should go up when there is more uncertainty, and the risk premium relates to the discount rate. Is where youium discount the future. Many rapidly growing companies, you cant justify the value on next years earnings, which is the convention for many more mundane businesses. You need to make certain expectations about a companys ability to become profitable and those profits to grow at a rapid rate to justify the values of where these companies are trading. I think that leads to more volatility. Ofnne that was bill Ackman PershingSquare Capital management, speaking to vonnie quinn exclusively. Is this flash headlines, we will talk about fedex. They plan to hire 70,000 Seasonal Workers to handle a holiday surge. There is delivery demand at unprecedented levels. They already added thousands of jobs with shipments spiking 27 from last year. Sunday deliveries will be extended to 95 of the u. S. Population. Bridgestone is said to be weighing the sales of the firestone buildings product Building Products unit. Firestone is part of bridgestone americas. Ofy have a reported profit 250 Million Dollars and may attract interest from private equity firms in the roofing business. Marketwise, looking at tech stocks after the nasdaq 5 , tencent to porphyry. Or his sent 2. 5 down mirroring what is happening on wall street. Red, dragging down major markets. Hang seng 1. 6 to the downside as we see Global Equities pulling back from alltime highs. Just as we did see the strong runup showing signs of broadening into other sectors, there we go, others not spared. Not much green out there. This is bloomberg. Yvonne its almost 11 00 a. M. In singapore and hong kong. Haslinda welcome to Bloomberg Markets asia. Topaad here are the stories. Really for Goldman Sachs as malaysia drops criminal charges, a step forward in the deal to resolve the missing money scandal. Haslinda the race for tiktok asset sees softbank considering a bidding india. Softbank owns a stake in tiktok and has been taking to the geo platform. Rishaad tech slides as investors question valuations. China bets on domestic chips giving the program the same highlevel packing backing enjoyed by the Atomic Weapons Program in recent years. Haslinda looking pretty red across the board in asia, most benchmarks in this part of the world are having losses of at least 1 . Gaining momentum, investors questioning the overstretched valuations. The msci down 1. 3 percent, losses for the csi 300 lower for a second day. Tech and internet names are down. Moodysp lower by 1 , keeping its rating on the philippines after the gdp estimate was cut. Rishaad looking to the india open, futures and trading in singapore, and we have for singapore, nifty futures suggesting more of the same. 5 fiven india, down. 98 , the rupee weakening from the highs recently against a backdrop of the bloomberg dollar index coming back. Lets bring in james, jp morgan head of equity research. It is partly down to these tech names that have reached spectacular valuations. I think you have said on this tradingd i am reading, three standard deviations expensive. What does that mean in english . We look at where valuations in the tech space lie right now, statistically you have significantly less than 1 of the overall observations sitting more expensive than we currently are. Cheaperat 99. 7 line than we are right now. It is an incredibly interesting situation. The other way to think about it is very clearly across the tech space now, you have a series of upstarts that are poised to at least in the popular imagination, replace the incumbents. In many situations, the market cap of those upstarts are larger than the market cap of the incumbent throughout its entire trading history. We have several examples in asia , globally you have tesla versus the entire auto industry. I think it is right to question the scale of the outperformance we have seen on the yeartodate basis. The next obvious question has to be, is this a gut check, the fall we have seen . Or is it presaging a longer downdraft . James i think what we will see is an ongoing rotation. From a jp morgan perspective, we are not seeing the tech sector is downandout forever. We are looking at a rotation out of the out performers and into sectors where we still see significant demand and more appealing valuations. We are actually looking at pc home demandrk from pushes that story into 2021, which is longer than what is currently baked into share prices. We are looking at chromebook demand driven by education institutions and ongoing strength within the gaming equipment space. We see incremental pockets of demand that arent fully reflected into share prices. Some of the larger concept stories have run very far, very fast and we can take a breather most likely through the end of the year because many of these spaces you are not looking at significant positive catalysts. For certain segments you have seen significant inventory buildup. If you look at huawei in particular, they built up large inventories due to regulatory risk. That has happened to some degree in the cloud and memory space. We need to see those inventories drawn down. That is at least a happier conversation. We think there is rotation for the rest of the year. Is a difficult question. The team we have come of the question of the day, what it is, how long before equities reach record highs once again . Have awe really already lot of indices. Unfortunately for the u. S. And a number of other markets, the answer has been provided by the markets themselves. The fascinating aspect isnt the index, but the relative performance within the index. If you look at the u. S. , you are seeing record levels of share price, market valuation, as well as overall valuation statistics, particularly in the tech space. You see industrials and cyclical stocks trading inexpensive that havent performed at all on a yeartodate basis. You are seeing similar dynamics across asia. When you look within a country at the various indices, in korea, you have one index outperforming the kospi and you have these really severe tilt in markets right now. The index is not really representative of the underlying economy. Because you have this sharp divergence, the innerworkings from the index are more interesting than the index level itself. Haslinda having said that, we are seeing other threat levels. There has been no catalyst overnight. Why today . Why are we seeing a selloff now when there has been no catalyst, although perhaps the Options Markets suggested this was coming . James i think you hit the nail on the head. One of the elements of this job i find interesting is, it is a combination of indepth fundamental bottoms up research but also, how all of that gets expressed in the market. At jp morgan we track Market Positioning tightly. Our analysts in the u. S. Published the potential for a value spike and a growth sell down off the back of extreme levels of Market Positioning. We have seen this happen three or four times this year. The difficulty this creates for investors is, it is very sharp and sudden. Historically this year it hasnt been particularly longlasting. It does create significant portfolio volatility. Generally speaking it doesnt allow a lot of trading opportunities. We generally encourage investors to look through these situations to the underlying fundamentals and for certain sectors, we see these opportunities for rotation of my country allocation perspective, we are comfortable with over weights in china, under weights in Southeast Asia and india, using the market volatility to reorganize port fee or the os portfolios for the mid to long term. Haslinda have you been encouraged by the earnings s . They are em beating estimates but fisa reduced estimates. James it is an interesting question. Our research and understanding of the world as expressed in market dynamics, a fascinating ask expect aspect is, in the u. S. , 75 of companies are beating expectations on the market is trading up off the back of that area the undercurrent is still growth, it 33 . Ill down looking at the headline number in terms of the year on year drawdown in earnings it looks horrific, but analysts have slashed expectations so aggressively. We dont really have that cushion in asia. Estimates werent drawn down nearly as much. Asian earnings are coming in roughly in line with expectations. E. M. Asia is performing better than the rest of the world, latin america in particular is disappointing relative to expectations, but the expectations game is fascinating. The benefit in the u. S. Is this absolute slashing of expectations in a way that you havent seen in the rest of the world. We prefer em asia to the rest of the world but the u. S. Has stood out this earnings cycle, not because of reality but reality versus expectations. Before i want to talk about the fed. To inflation, not surprising. You say the goals have changed but the tools of not. Have not. James that is fair. We talked about this in prior programs. The average inflation targeting conversation has been front and center for 612 months now. It does matter. One way to think about that is to envision the past as if this policy were already in place. One of the things we are clear on is if we had been looking at average inflation targeting for the past 10 years, we would not have seen the hikes out of the fed in 2015 and late 2016. The u. S. Dollar would not have strengthened the way it did through that timeframe and critically, manufacturing many recessions in those years most likely would not have occurred. Our stance is not that it doesnt matter. Our stance is that the tools they used remain roughly unchanged. In his most recent market remarks come apollo didnt talk about the tool chest. The changing goal absolutely matters. A historical look helps us understand that but we dont expect incremental tools to be blocked that are different from what we have been. Was reading your research. Im interested in your politics by numbers series and the impact of covid19 on different countries, and how that dovetails into populism. Tell me about how that informs you as to what happens to the economy and what happens with the share markets with respect to territories. James the politics by numbers series, i am excited about it. It is an attempt to quantify theory. Particularly when we talk about geopolitics, we tend to have many anecdotal or case study conversations which arent useful if you are trying to quantify things. Our attempt is to put numbers behind quantifying the underlying drivers of populism. What we see clearly in the numbers, as economies grow slower and as income inequality gets worse or wider, that creates an environment that is conducive to populism. If you overlay that conversation to the Global Environment today, it is critical to recognize that despite the fact that we have this synchronized mobile recovery, within that synchronicity we see significant diversions. One way to think about that is growth. Ept of loss gdp china is expected to fully recover from covid. There gdp at the end of 2020 one is effectively the same as what we forecast precovid, a seven basis point inference. If i look at markets like india, we are forecasting a 10 percentage point shortfall, so very different. That creates an environment that is conducive to populist rhetoric. One we think about geopolitical risks, we need to take that into account and recognize from an environment perspective, markets like india, the philippines and thailand, the economy created a market that is more conducive to populist rhetoric than markets like china. James, thank you so much. James sullivan from jp morgan. Lets get you to new york because we have the first word news. Malaysia dropped 1mdb criminal charges against Goldman Sachs, a key step in the deal that allows the bank to move on from the missing money scandal. The decision marks progress in goldmans efforts to resolve its worst issues since the financial crisis, but it is in negotiations with the u. S. Apartment of justice for a separate agreement. Democrats and republicans will Work Together to avoid a Government Shutdown ahead of the election. To leth a stopgap bill federal agencies keep working. Nancy pelosi and Stephen Mnuchin clinched an informal agreement to keep the government running after the start of the fiscal year on october 1. There is still no progress on a new virus stimulus deal. Worldwide coronavirus cases have now topped 26 million, with 865,000 deaths. There are warnings about new u. S. Infections after this weekends labor day holiday. In brazil, where cases have exceeded 4 million mother have been more than 800 deaths in the last 24 hours. Although infections and deaths are slowing. India reported record daily infections of more than 80,000. Thailand lost its 100 day virus free streak, reporting its first locally transmitted infection since may. This involves an inmate at a prison whose history showed he worked as a dj before being jailed. France is throwing 100 billion euros at a stimulus plan, aiming to revive the economy and the president s prospects with the election two years away. Global news cash global news 24 hours per day, onair and on quick take by bloomberg, powered by more than 2700 journalists and analysts in im than 120 countries. Karina mitchell. This is bloomberg. In a moment, we will have more details on chinas push to become selfreliant in semiconductors. Later, we focus on indias virus response and its Health Care Challenges with a Health Care Analyst area that is coming up. This is bloomberg. Rishaad you are back with Bloomberg Markets. Administrators are formally approving the sale of Virgin Australia to the u. S. Private equity firm bain capital. The trade union approved the transaction at a meeting that took less than three hours. The takeover scraped through. Administrators needed to cast their votes. The sale received the green light from the stricken airlines. They owed Something Like 6. 8 billion. That is breaking at the moment. That is from the Australian Financial review. The stocks very much in frame, tumbling on chinas plan to prioritize the development of its own domestic Semiconductor Industry. Faceacebooks of the of trump restrictions. Stephen engle joins us. We talked about how bad this was him chip stock rout. Give us a sense of the ramifications. Ramifications, china wants to be more selfreliant especially with the Trump Administration putting these blacklists and entity lists and blocking the chinese tech Companies Like huawei from accessing muchneeded semiconductors and integrated circuits and the like that underpin all the advanced technologies the world is trying to gain supremacy in. Is this the tech cold war . It might be the beginning. What we are seeing is not surprisingly, china with xi jinping earmarking upwards of upwards of 1 trillion one point 4 trillion in advanced technologies, everything from wireless to artificial intelligence. According to people close to the situation, they are likely to add a number of sweeping policies to encourage and finance research and development and the Actual Development of advanced semiconductors into the next fiveyear plan. Top leaders in beijing will be meeting in october starting next month to start hammering out the next fiveyear plan for china, and the investment in tech is going to be key am especially given the noise and the moves by the white house against chinese chipmakers. Some have called the beginning of a tech cold war between china and the u. S. Was the move by china and evitable event how critical chips are just to just about every advanced technology . Say this will accelerate chinas investment wherenovation in areas the two countries are battling for supremacy into the next few decades, if not centuries. This could accelerate that. China, Chinese Tech Companies, i misspoke when i said chinese chip companies, Chinese Tech Companies need u. S. Designed chips. They spent about 300 billion per year on buying these u. S. Designed and often made in taiwan or elsewhere chips. They need the patents and the like, that are controlled by u. S. Companies. That has been blocked by the Trump Administration. Why not . When you are sitting on 3 trillion in reserves, if you have a command economy where the government can target these Strategic Industries with targeted investments, it is sort of, you can predict this was going to happen. If there is a truly bifurcation of the global tech world and supply chain, it is not winwin. It is separating the two worlds. We will see how it plays out. Engle rightephen there. Still to come, softbank one into bid for tiktoks u. S. Operations. Now it is said to be looking at india. We will have the latest. This is bloomberg. Haslinda softbank shares ended the morning session more than 2 lower in tokyo after bloomberg revealed it may bid for tiktoks assets in india. Sources say mash aoc sans son is looking at bids. What do we know about the possible bid . Tiktok is considering selling its operations in several countries after the local governments shutdown the app. User data was passing into the hands of china. In this context, Softbank Group is exploring and assembling a group of bidders for tiktoks india assets and has been looking for local partners. With have been talks several companies, including infocomm. The other company is the number two operator in india. Softbank is in active talks with these companies. The discussions have fizzled out, but still, Softbank Group is exploring options for getting partners for buying out tiktok in india. Rishaad what is the potential deal mean for these indian telcos . Best going one way. Tiktok is one of the most downloaded apps in india. Getting tiktok in india would bolster the footprint for both companies. Also remember there is a huge backlash against tiktok and chinese applications india, india and chinese apps. Y any Company Buying tiktok would have to face a huge backlash, but potentially if it happens, for bothe perfect companies. Pr son jake in mumbai. In mumbai. I a company guarding guiding its price at or hundred 12 hong kong dollars per share. Chinese chinas largest Restaurant Operator is selling a most 42 million shares. Yum china will expand its Restaurant Network and much of the rest will be for new technology and supply chain and food. Huawei is looking to expand its retail presence in europe as it fights 5g bands around the world. The company is planning to open eight physical stores by the end of the year in spain, france, germany, italy, and belgium, and the u. K. It will launch 42 socalled experience stores. Huawei is the worlds thirdlargest with already 3 million 33 million active users in europe. Rishaad lets take a look marketwise. As we get into the lunch break a down arrow story. Weakness across the board but nowhere near what we saw on the street of dreams. A lot of pressure coming at the moment from these technologyrelated stocks. For the nasdaq, dropping to around 5 , with the big names like apple declining 8 , big falls for tesla. Indicatee dark colors the tech side of things. We can see they are some of the worst sufferers at the moment with the likes of tencent down 2. 5 . 1. 8 in the red. That is a look at the markets in china as we go to lunch. This is bloomberg. Look here, its your very own allinone Entertainment Experience xfinity x1. Its the easiest way to watch live tv and all your favorite streaming apps. Plus, x1 also includes peacock premium at no extra cost. This baby is the total package. It streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. Yup, the best really did get better. Magnificent. Xfinity x1 just got even better, with peacock premium included at no additional cost. No strings attached. Haslinda live pictures of the lion city, it hasnt been spared from the selloff. Lower for a second day. Almost 11 30 a. M. In singapore, in the middle of the trading day. The sgx creating two new crypto indices. It will be asias benchmark for bitcoin. Singapore says it is important to bring transparency to this segment of the market. The crypto indices. The sti down 1. 5 . Rishaad lets take a look at the first word headlines. The u. S. Trade deficit rising to the overallh gap of goods and services swelling to more than 63 billion from 53. 5 billion in june, the positive balance from services declining for the first time in three months. Month on month up 8 although imports climbed almost 11 . The government of indonesia says it doesnt support proposals to dilute Central Bank Independence and relies on policymakers to help fund the fiscal deficit. Ministers intend to maintain the sovereign bond to support protection amid the pandemic. That, despite bank of an in asia saying the program has been simply a oneoff measure. Is toores central bank ease bank access to u. S. Dollar funding to protect the Financial System from the fallout from covid19. The authority of singapore will provide channels to borrow money and allow lenders to accept more forms of collateral. They say the move is intended to contain liquidity strains before they could become a serious threat. Top english soccer clubs face a potential drop in income after the league terminated its broadcast agreement in china. The English Premier League acted while its license withheld payment. The deal is worth more than 60 665 Million Dollars over three years. They are seeking a new partner in china with the new season due to start on the 12th of september. Haslinda in the markets, a correction that is a long time coming. Asia under a lot of pressure after the selloff in the u. S. , where we saw the nasdaq slump 5 . The s p down 3 currently, the benchmark in asia down 1. 5 . The nikkei act from lunch, lower by 1. 1 . The kospi seeing its biggest drop in a most two weeks, samsung among the laggards. We are tracking the yuan, beijing allowing gains as it seeks to cheapen imports and boost consumer spending. At 684 point 64. In malaysia, it dropped 1mdb criminal charges against Goldman Sachs. That allows the bank to move on from the missing money scandal. Our reporter is in koala loom poor. Pur. This kuala lum was expected. They stopped the agreement in july. Huge 2. 5 billion cash payment to malaysia that was part of the process. That is expected. What is next . One of the interesting things is the case against goldmans former directors. People we spoke to say the malaysian [indiscernible] one of the biggest sticking points, so that is likely to be resolved. I think next for goldman, we know they are in discussions with the u. S. For a settlement so all eyes are going to move there. This has been a complicated web of funds around the world. The man at the center of it is still at large. Right. He remains at large. Every time, they are trying very hard to find him. Several times have said they know where he is. They have seen in several jurisdictions, they believe they have an extradition treaty but as it stands they havent been successful finding him or even in trying to make him pay for charges in the 1mdb scandal. Haslinda amid the developments, this is considered a win for the person who came to power with the majority. Despiteis interesting, they are supported by the party that was in power when the scandal happened. At first, there was concern there was going to be a step back in the investigation, but in fact, he has managed to put four hurt the agreement and that shows in his Approval Ratings. People are satisfied with how he handled the virus. His Approval Ratings are around 70 . That is interesting because that is a most twice what we saw in the last few months for the previous prime minister. You. Ad thank coming up, the focus is on indias response to the coronavirus. An outlook on its pharma sector. Bernstein lunched coverage on the healthcare industry. This is bloomberg. Haslinda you are watching Bloomberg Markets asia. Some headlines, hong kong extending its Virus Testing for four days and this will be through september 11 and it will be happening at 122 locations. Hong kong extending testing for four days are september 11 and it will be done at 122 locations. In india, it is becoming a global epicenter in the coronavirus with 80,000 infections reported in a single day. Scientists are racing to find a vaccine, with economies and lives left really by the upheaval. Our next guest admits a treatment may come next year, but says involving the private sector and not being dependent on the government is absolutely crucial. Joining us is our bernstein india analyst. What is driving the optimism about a vaccine . Are fourly, there candidates racing towards the finish line. In terms of capacity for manufacturing vaccines, globally there are around 5. 7 billion doses of vaccines manufactured and india alone has capacity for manufacturing 2. 3 billion doses. India has some of the largest manufacturers. One of the largest capacity globally has existing partnerships now with astrazeneca and oxford so they can manufacture and commercialize their vaccine once it is approved. They also have a partnership another candidate in trials. We have access to two late stage candidates. Another globally Large Manufacturer has partnered with access johnson and has to their vaccine candidate. They will be able to manufacture and commercialize it in india. Because of these partnerships, india definitely has multiple shots in the goal and beyond these global candidates, we have several indigenous candidates in the pipeline, earlier stage, phase one and two, but enough options out there and that is why i am optimistic that early next year, you will see the first few people starting to get vaccinated. Mean for what does it the Indian Health care sector . Is it more than a safe haven in troubled times . Absolutely. Seen aovid, you have sharp rally when it comes to health care and pharma. I think a lot of this does have to do with the fact that there was a lot of liquidity in the system, and people did flock to pharma because it is a relatively mobile sector. It is the only sector with a positive growth outlook. Arelieve fundamentally, we at an inflection point, and from now on you should start seeing [indiscernible] which is why [indiscernible] beyond the rally you are seeing. Pushieve there is room to and make this happen. Materialization of the opportunity in the u. S. [indiscernible] rishaad we have a few technical issues there. We will try to get back to her. Breaking news, confirmation from what we had earlier, this Virgin Australia u. S. Private equity bain capital sale has been approved. We will take a look to see if there are more details coming through. We have bain capital at the moment confirming that. Other news coming out, Scott Morrison has been talking, looking at ways to increase international arrivals. They are looking at ways that they can actually perhaps get arrivals from new zealand and they could relax restrictions that limited numbers of people can arrive in australia at the moment. A couple news stories breaking at the moment. Bain capital confirming the deal for Virgin Australia, saying it has indeed been approved by administrators. Indian markets, we are three minutes away from the start of the session. Of ae having indications down arrow story. Some price discovery as well, reflecting what is going on and reflecting what is going on in the rest of the region. 5 nasdaqaves of the fall is being felt here, as well. I believe we can get back to our guest. She was talking about the challenges involved with vaccinations and i want to get size, ifa country that you have two or three companies with vaccines, it will still take a long time to get everybody immunized. Absolutely. I think it is optimistic there will be a vaccine early next year on the market. The last question person to get the vaccine is probably are placed to it a half years of age. There are three challenges. Even with the capacity we already have, i think it will be difficult to address 1. 3 billion population and most of the late stage candidates, it seems likely you would need two doses per person so that is 1. 3 billion population, then you would multiply it by two. It is a large number. In 2021, we will have enough capacity to vaccinate everybody. The second challenge i am seeing is even assuming we solve the capacity issue somehow, if you look at the kind of vaccine programs that india has experience with, these are largely pediatric vaccines and vaccines for pregnant women. Is Vaccination Program easily 34 times what india has experienced so far with. Manpowere and trained will be a big challenge. If you look at the recent programs the government has implemented, it seems like around 1520 doses per month, that is nowhere close to be what would be required if we want to vaccinate the population. So these are the challenges. Rishaad you say the private sector should be involved, not the government. Some say it should be a combination of both. I think it has to be a combination of both. The point i was making earlier, would take itent entirely on its shoulders, it will take a long time for us to access the vaccine, which is why i think the private sector should step in. This would definitely bolster both storage and trained manpower capacity. The government needs to get the government and the private sector needs to get creative in terms of, can you repurpose the storage that only exists for other injectables or even fruits and vegetables . Can pharmacists actually step up and complement your trained manpower that is required . You need to involve the private sector, and push the boundaries of thinking in terms of how you can supplement the existing capacity. Respond toow do you those who say that indias pharma boom will fade because we have already seen how perhaps u. S. Rivals are consolidating and keeping prices down . On top of that, Indian Pharma is thend when it comes to category of china as well as korea. Your thoughts on that . I think Indian Pharma companies have underperformed in the last three or four years because of the distribution consolidation. But i am excited about is the opportunity that is now coming in the form of complex genetics. These are difficult to make respiratory inhalers, difficult formulations, longacting injectable formulations. The larger players have been investing for the down cycle in the last three or four years. We have seen indian investments stepping up. I see monetization of these coming through. Which is why i think at least enough you names, again in a few names, the larger names that have made these investments are the ones that are likely to benefit so in those kinds of , these are companies that have been investing in complex medications and have a maturing pipeline in the industry. These are opportunities that can easily exceed the revenue and very high growth margins, as well. That is where i think the growth and the Margin Expansion opportunities are coming in the future. That is why i believe at least these companies should not be part of the up cycle and you will start to see growth continue. Rishaad thank you so much. Analystthe bernstein joining us. The Indian Markets just opened, feeling what we have in the rest of the world, downdrafts right across the screen. 1. 4 down in the sensex a fallback for the nifty. Banks under pressure, rbl bank more. 3 , sbi 2. 9 , and lets have a look at what else is going on. Tech stocks very much in focus. There is the nifty, the i. T. Index one point 6 , surprisingly not really feeling the pressure as much as other parts of the continent. This consultancy tata percent. Cy, 1. 1 the story has been the move up in the bond prices. Yields tumbling, the best week, and it is friday, the best week in 20 months for these yields. They continue to go down. Down,s another 2. 5 against a background where we have seen the rupee weakening a fraction and that is perhaps found to a little bit of renewed Dollar Strength more than anything. Coming up, the Fantasy League snags a reallife legend. It is the basketball great Michael Jordan. He is given a stake in an Online Gaming company. What the matchup means for business with companies. This is bloomberg. Rishaad nba legend Michael Jordan is pushing into the Online Gambling space after receiving a stake in draft kings. This Company Offers ecasino games and Fantasy Sports for cash. In exchange, jordyn will provide strategic advice to the board of directors. With the caught up president about the arrangement. We are excited to have Michael Jordan join as a Strategic Advisor to the board. I am a board member, i oversee our marketing and brand building operations, i think he is one of the geniuses in terms of brand building. He is a marketing genius. Image and build a brand around himself. It is an entire cultural movement, and i think being able to work with michael on our different business initiatives, our marketing, our brand, and the daytoday interaction, will help elevate what we are doing on all aspects of the way we go to market and connect with our customer. To yourdded one billion market capitalization. The markets were excited. Talk to us about the focus on marketing and how competitive it is at the moment, because you have new entrants into the market. You have been up against fan and more. Nduel there has been a worry that has been there has been too much of a focus and too much spent on marketing. Will that be a concern . But Michael Jordan, can you get it more focused . Performancegs is a marketing company. We invest where we believe we can get a great return on the Marketing Investments we are making. The Sports Betting expansion in the u. S. Has dramatically increased our customer lpds in those markets and in some markets where there are casinos and other things, all of that adds up to a really valuable customer that we are chasing after. There are millions of them throughout the country. We believe our culture of analytics, performance marketing, and using that framework to go to market and invest aggressively but up to our limits in Customer Acquisition is the right formula to win longterm. We have eight years of experience doing that in fantasy and we are applying that to Sports Betting and casinos. How much of that spending is trying to capture the customers attention while you have them . Many people are working from home, so they feel like gambling and Sports Betting is something have time for. Are you worried about a shift if we do end up going back to work . How do you continue to capture that attention . A day in, day out effort make sure we understand the context around what is going on in sports and we are staying relevant and connecting with the customer. Last year at this time, there playoffs are major league baseball. Our team is hungry to go out and attract and retain every last skin in the game sports fan in the united states. That is what we do. We are a content Company First and everything we put out his mentor drive engagement and retention of that audience that is so coveted right now. Why a physical location . You announced the deal across the street from wrigley field. As a kid who grew up running around comiskey park, i wont fault you, but the on that, i beyond that, for a business that has been successful in its online presence, what does having a physical location bring . Draft kings announced our official partnership with the cubs, which makes us the official Sports Betting partner in this agreement. I think the crown jewel of the agreement is the rights to build a retail sports book, which is really going to be a flagship destination sports book in the heart of wrigleyville. We are in the process of collaborating with the illinois gaming board and the city and state officials to make sure we can get our plan approved and break ground. I believe draft kings as a part of that community, we can add a lot to the experience of going to a cubs game, stop by the book, make a couple bets, no income a cash them on your way out. It can add to the experience millions of fans are looking for , but we want to do with the right way and build great relationships in the city and collaborate with the gaming board and make sure that is a fantastic relationship. Was the cofounder and president of draft kings north america. The marketsou to this friday. Global stocks continue to slide after what we saw in the street of dreams. A rotation away from highflying tech stocks gaining steam amid questions of the sustainability of lofty valuations. The markets arent as bad off as they were in new york. Trade is focusing on an important bit of Economic News a bit later on. Right. A thats the u. S. Jobs report due friday, expected to show a moderate gain. Expecting employers to add 1. 3 5 million workers in august. The Unemployment Rate is forecast to dip below 10 for the First Time Since march. A lot of data to mull over for investors. Rishaad absolutely. Making sense of all this and getting the perspective, our interview with larry kudlow. That is after the release of the u. S. Jobs report, at 10 00 a. M. New york time, 10 00 p. M. In singapore and right hearing hong kong right here in hong kong. The following is a paid program. The opinions and views expressed do not reflect those of bloomberg lp, its affiliates, or its employees. The following is a paid advertisement for the rock, pop, and doo wop collection. Sponsored by treasury collection. Com. . Little girl of mine .